Energy Complex Rebounds

The tumult during the prior session began in China, where the Shanghai Composite Index fell by 8.8%. Traders were concerned about signs that the Chinese economy is overheating.

Energy prices were unable to steer clear of the stock market collapse, even though the selling panic in equities was unwarranted, according to Dennis Gartman, publisher of The Gartman Letter.

"The Chinese selloff should be somewhat expected, as it comes after a 14% gain year-to-date and a spectacular 130% gain in 2006," Gartman wrote in his newsletter.

Meanwhile, energy stocks were mixed. The iPath Goldman Sachs Crude Oil (OIL Quote) ETF rose 2.2% to $37.62.

Valero (VLO Quote) announced Tuesday that it will restart its McKee oil refinery in Sunray, Texas, by early April. The 168,000-barrel-per-day refinery has been shut-in since a fire erupted there on Feb. 16. Shares were up 0.3%.

Whiting Petroleum (WLL Quote) was downgraded by SunTrust Robinson Humphrey to reduce from neutral after it announced that its profits in the fourth quarter fell by 27%. The stock closed 12.4% lower to $38.71.

Elsewhere, Texas-based electricity provider Reliant Energy (RRI Quote) was downgraded by CIBC World Markets from sector-perform to sector-underperform. Its stock was down a half a percent to $16.94.